Top 3 Strategic Priorities To Maximize Hospitality Business Performance Post COVID-19
The global hospitality industry is growing at a rapid rate imparting opportunities to maximize your business performance. According to a strategic report by IHG hotels, the global hotel industry is a $525 billion industry made up of 18 million rooms. Post-COVID 19, many businesses have experienced immense changes considering today's consumer behavior and expectations. However, some hospitality companies have also gained a competitive advantage in global markets. The article will critically emphasize 3 major strategic priorities such as the customer-centric approach, managing costs, and embrace loyalty to help a hospitality business to skyrocket its profitability and overall performance in the present business environment.
1. Customer-Centric Approach:
Post COVID -19, the most significant factor is to evaluate the current customer expectations and implement those in order to achieve the intended outcomes. According to a report by KPMG, around 63% of customers consider value for money as a key purchase driver while purchasing products and services. In today's world, technology, adaptation, and health play a major role where the highly successful companies consider these factors as major key drivers to success to post COVID -19.
- Embrace Technology:
Many hotels have begun to adapt their operational strategies and implemented hybrid models such as digital menus and delivery options, etc. As more people tend to work from home, there are huge opportunities in the online entertainment space, from live performances to online concerts, and live broadcasts. Building a powerful digital experience is a valuable investment in today's world because people do not stay away from technologies. Customers will want the convenience of recommended shopping lists, recipes, and meals that are customized to their flavor, taste, and texture preferences.
- Adaptation:
Companies that follow standardization strategy are slowly moving towards the concept of adopting "think global, act local". Not only businesses focus on adaptation, but also hospitality professionals. Efficient adaptation could be achieved through critically analyzing the people surrounding your business area and tourists data, etc. For this purpose, segmentation, targeting, and positioning (STP Framework) is essential where you analyze and evaluate the customer's preference, their mindset, lifestyle, food habits, spending habits, disposable income, etc. Even the businesses who never use the STP framework are rapidly using it post COVID -19 to understand consumer behavior and expectation. By considering all these factors while reopening your business post COVID -19, a competitive advantage would be waiting at your doorstep. This is because you have analyzed and implemented the present customer's expectations and positioned your business more efficiently.
- Health:
Post COVID -19, consumers have become health-conscious both physically and mentally where businesses have to focus on this and adapt the products accordingly. According to an article by Forbes, around 54% of all consumers, and 63% of those 50+ prefer healthy food and beverage in 2021. While respecting consumer privacy, foodservice and hospitality companies will have opportunities to develop personalized recipes, custom diet plans, and individualized products to retain customers. Modifying your products considering sustainability and health is one of the keys to success in today's world. Moreover, plant-based foods are becoming increasingly popular where businesses can include these in menu items.
2. Managing costs:
Many hotels shut down rooms temporarily, however, it's not an ideal way to control costs. By thinking out of the box, it is essential to acknowledge that some rooms can be converted into office spaces for customers who work from home by providing them an impeccable experience. Moreover, it is also imperative to reduce electricity consumption and adjust your staff’s working schedule. Review expenses and contracts with suppliers and renegotiate costs for convenience. Many hotels are cutting out middlemen and going straight to wholesale markets to lower raw material costs and get fresher products for restaurants. This is also important in terms of customer expectations because today's customers also prefer fresh products. Most significantly, an adaptable workforce can be trained or hired who can contribute huge positive operational and financial performance in the post COVID -19 world.
3. Embrace Loyalty:
Loyalty programs are fundamental because it leads to increase sales and customer retention. For hotels to survive the 50% occupancy levels anticipated over the next 18 months, loyalty programs will be the key differentiator in survival. Hotels can be more digitally-enabled by leveraging digital transformation to surprise their loyal customers by offering connection points to their friends and family back home. Subsequently, use your loyalty program as a tool to remind and deliver on your brand’s trust.
- Rethink your marketing strategy:
It is significant to work on your own digital marketing campaigns as opposed to emphasis only OTAs. By targeting the right audience, through a wide range of channels, companies can view greater opportunities mainly through discounts, promotional offers, and value-based products and services. Establish synergies with B2B customers and negotiate SMART deals.
